Not sure if this really fits in this thread but since its about doom and gloom, let me state it.
What are the odds for Adani backed companies to default on their debt?
As inferred from the below video, 21% of his debt was funded by PSU Banks at fixed interest rates. SBI has the biggest slice.
https://www.youtube.com/embed/f83o-CJo2xc
International Banks : Citi, Barclays, DBS Bank, JP Morgan Chase, Mitsubishi Financial Group (MUFG) and Standard Chartered Bank are also among the lenders to Adani group.
The Adani group’s total debt is 2.2 trillion, while India’s nominal GDP is 3.5 trillion. This is such a worse situation as the Adani group’s total debt is increasing on one hand, while India’s GDP is 3.5 trillion so you can think how much debt is included in the overall India GDP value and it will pose a blunder risk to our Indian economy.
As Central Banks across the Globe are on a Rate hike spree, will Adani be able keep up with funding the motley of sectors they have stepped into?
Debt funded expansion cannot last on a rising interest rate environment.
As more and more people are turning bullish on the banking sector with improvement in asset quality across the board, one couldn’t help but wonder if there’s a Black Swan lurking.
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